City have struggled against their European opponents this season.
But Kompany told City's website: "When I was that age, if any of the first-team players took an interest in what we were doing, it was a massive boost for us.
"There are enough good players in the team, and they will know this is the time to make it happen. You keep going no matter where you stand in the table.
"It's a big test for the youngsters. It's very important at that age they get big games.
"Experience doesn't just come by winning, sometimes you have to lose as well. It's not a negative when you're that age, the important thing is that you learn from it.
"This tournament gives them a chance to experience different styles of football. They'll learn from this, and it will be a great help when they reach senior level."